Life is full of the unexpected, and while thinking about what would happen to your loved ones if you were no longer around isn’t easy, it helps to have some protection in place.

In the words of the Financial Markets Authority, getting life insurance “is one of the most important financial decisions you’ll make.” As a reminder of how helpful it can be, here are some key reasons to get life insurance.

Protecting your loved ones

This may be the most important reason why Kiwis get life insurance. As Richard Klipin, CEO of the Financial Services Council, once pointed out, “Bad things happen to all of us at some stage in our lives and it’s vital that you have the protection you and your loved ones need.”

In general, major life milestones like getting married, or having a baby, or even having parents or dependents whom you support financially, usually trigger the need for life insurance. If anyone in your life depends on you financially, then life insurance can help them maintain a similar standard of living after you’re gone.

How life insurance can help your family

Depending on the sum insured, life cover can be used for:

  • Daily and ongoing living expenses
  • Paying off your mortgage
  • Paying for your children’s education
  • Covering funeral costs
  • Paying for your partner’s or dependents’ retirement needs.

If you have any kind of debt, like your mortgage or credit card, that would fall upon someone else if you’re gone, then life insurance can help your family take care of it.

As advisers, we are here to help you assess your financial situation and include your debts when you decide on a policy, so that your dependents will have enough to pay off outstanding balances.

It’s about peace of mind

Knowing that they have a life insurance policy in place brings peace of mind to thousands of Kiwis every day. The New Zealand life insurance industry pays around $4 million per day, or $1.47 billion annually in claims to support Kiwis in their most vulnerable times – it’s a measure of the help it provides.

Remember, it’s all about peace of mind – the sense of security that comes from knowing that your family will be supported when it comes to their financial future.

Like some advice?

Getting life insurance can be an important decision, both emotionally and financially. And we are here to help you every step of the way. So, if you’d like to know your insurance options, and what is the most appropriate level of cover for your current situations and needs, get in touch today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.